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Revolution Food Mark.Et/Ng AE-404 BARGAINING SUPPLY CONTRACT TARIFF <?~,<:J;. coc,"\ REVOLUTION SUPPL y • IR ~ ~~ FOOD MARK.ET/NG <::)'<; .,.4~,~~ M A R C H 22, 1961 COST UTILITY Department of Agricultural Economics and Rural Sociology College of Agriculture The Ohio State University Ninth Annual Agricultural Marketing Conference Theme "The Revolution In Food Marketing" March 22, 1967 Committee: Charles H. Ingraham-Chairman M. Eugene Cravens - Program Robert E. Jacobson - Publicity i .' CONTENTS Page Welcome • • . • • . • • . • . • • • • • . Dr. John T. Mount Vice President New Horizons in Food Production • • . • . Mr. Kenneth A. Harkness 1 Agricultural Engineering Changes in Marketing Technology . • • • . • Dr. Thomas T. Stout 14 Agricultural Economics Changes in Food Wholesaling and Dr. Bruce Marion 19 Retailing and What They Mean • • Agricultural Economics Changes in the World Food Economy Dr. Ralph Sherman 26 and What They Mean • . • • • . • . Agricultural Economics An Evaluation of the Recommendations in The National Food Commission and Their Meaning to Farmers, Farm Businessmen and Dr. Richard L. Kohls 31 Consumers. Purdue University SPECIAL SESSIONS Pricing - Retail Pricing Strategy •••••• Mr. William G. Spearman 37 Albers Supermarkets Food Prices and Their Effect on 11iss Lois Simonds 41 Consumers. Agricultural Economics Discussion Livestock - Competitive Methods in Mr. Murray H. Hawkins The Wholesale Meat Trade • • • • • • Agricultural Economics Advancements in Forecasting Beef and Mr. Lonnie L. Jones 54 Cattle Prices .•••. Agricultural Economics Alternative Methods of Price Determin- Mr. Paul R. Thomas 57 ation in Slaughter Cattle, . • . • • . • Agricultural Economics Dairy - Price Bargaining Alternatives for Dr. Robert E. Jacobson 66 Dairy Farmers. • . • • . • Agricultural Economics What's Ahead: Milk Distribution and Dr. Elmer F. Baumer 74 Demand Graduate School Grain - Implications of the Food Commission Report and the Milling and Hr. Don Menne 1 78 Baking Industry •••••••••••. Mennel Milling Company ii FOREWORD This publication is composed of papers presented at the Ninth Annual Agricultural Marketing Conference, March 22, 1967 at The Ohio State University. The Annual Agricultural Marketing Conference is designed to provide an opportunity to examine in depth current problems and opportunities facing agricultural marketing firms. The purpose of the conference is to go beyond the day to day operational problems, to explore those basic factors affecting decisions made by individual firms, farmers and consumers; but which are not under the direct control of any one of these. The themes of previous conferences illustrate the nature of this educational endeavor: Vertical Integration in Agriculture Let's Look At Our Business Strategy Market Power Government and Marketing Bargaining in Agriculture Forecasts for Decision Making Focus on Pricing Exporting Ohio's Agricultural Production To A Hungry World The 1967 Conference used the theme, "The Revolution in Food Marketing" to focus attention on the changes taking place in the production of food, in the marketing system, and the direction in public policy as result of these changes and the policy recommen- dations of the National Commission on Food Marketing. iii PROGRAM Theme "The Revolution in Food Marketing" Chairman--Dr. Charles H. Ingraham Agricultural Economist o.s.u. a.m. 9:15 WELCOME--John T. Mount, Vice President, The Ohio State University 9:30 "New Horizons in Food Production"--Kenneth A. Harkness, Agricul­ tural Engineer, o.s.u. 10:00 "Changes in Marketing Technology"--Dr. Thomas T. Stout, Agricul­ tural Economist, o.s.u. 10:30 Discussion 10:40 Break 10:50 "Changes in Food Wholesaling and Retailing and What They Mean" Dr. Brue~ Marion, Agricultural Economist, o.s.u. 11:20 "Changes in the World Food Economy and What They Mean"--Dr. Ralph Sherman, Agricultural Economist, o.s.u. 11:50 Discussion p.m. 12:15 LUNCHEON--OHIO UNION Presiding--Dr. Richard Bohning, Associate Dean, College of Agriculture and Home Economics, o.s.u. "An Evaluation of the Recommendations in the National Food Commission and Their Meaning to Farmers, Farm Businessmen and Consumers" Dr. Richard L. Kohls, Agricultural Economist, Purdue Univerrity SPECIAL SESSIONS PRICING Retail Practices and Consumer Response Chairman--Dr. Vern A. Vandemark, Extension Marketing Specialist o.s.u. 2:15 "Retail Pricing Strategy"--Wm. G. Spe:;irman, Assistant Vice President, Albers Division Colonial Stores, Inc. iv 3:00 "Food Prices and Their Effect on Consumers"--Lois Simonds, Extension Specialist in Consumer Marketing 3:45 Discussion--Dr. Richard L. Kohls and above speakers LIVESTOCK Chairman--Dr. Thomas T. Stout Agricultural Economist o.s.u. 2:15 "Competitive Methods in the Wholesale Meat Trade"--Murray H. Hawkins, Research Assistant, o.s.u. 2:45 "Marketing Conditions in Brazil"--Clarence c. Bowen, Agri­ cultural Economist, o.s.u. 3:15 "Advancements in Forecasting Beef and Cattle Prices"-­ Lonnie L. Jones, Research Assistant, O.S.U. 3:30 "Alternative Methods of Price Determination in Slaughter Cattle" Paul R. Thomas & Thomas T. Stout, Agricultural Economists, o.s.u. 4:00 Questions DAIRY Chairman--John P. Parker Area Extension Agent, Dairy Industry 2:15 "Price Bargaining Alternatives For Dairy Farmers"--Dr. R. E. Jacobson, Associate Professor, Department of Agricultural Economics, o.s.u. 3:00 ''What's Ahead: Milk Distribution and Demand"--Dr. E. F. Baumer, Associate Dean, Graduate School, o.s.u. 3:45 Discussion GRAIN Chairman--A. Ross Milner Extension Specialist, o.s.u. 2:15 "Implications of the Food Commission Report and The Milling and Baking Industry"--Mr. Don Mennel, President, Mennel Milling Co., Fostoria, Ohio 3:15 "Report on the 1964 Survey of Ohio Grain Marketing and Processing Facilities"--Dr. John Sharp, Department of Agricultural Economics and Rural Sociology, o.s.u. v Welcome to Ninth Agricultural Marketing Conference John T. Mount, Vice President It is indeed a pleasure and I deem it a cherished privilege to extend those few appropriate words of welcome to this distinguished gathering of persons who represent the agricultural marketing exper­ tise in Ohio and in fact the nation. I note there is in attendance a goodly number of alumni of this University--many of i:hom are close personal friends. Like my colleagues on the faculty, it is always a special joy to greet and visit with our former classmates and students who return to the campus for these important continuing educational programs such as this Ninth Agricultural Marketing Conference. The theme of this conference, "The Revolution in Food Marketing," is worthy of some special comment. Much is said these days regarding CHANGE and the topics listed in your program are directed to the defin­ iton of this "change," our "revolution," is you please, and what this change means to Ohio agriculture and the food industry in particular. From my vantage point as a former agriculturist in the central administration of this University, there is no area of the instruction­ al and research programs in the College of Agriculture and Home Econo­ mics which needs greater emphasis today than the broad area of mar­ keting. Marketing changes using new technology requires the highest type of leadership because the role of people in this development is a central one. If the professional man or woman in the area of market­ ing, or any other area, is to maintain and improve his efficiency, he must keep on learning. Conferences such as this one are intended for that purpose and I commend those of you who have come to participate. Also, I extend a word of gratitude to those who have been responsible for planning this conference. This conference is one of our answers to those persons represent- ing the citizenry of this State who from time to time have expressed the constructive criticism of our lack of sufficient emphasis upon the marketing aspect of our instructional and research programs. Some have said we have not kept abreastof the technological changes effecting marketing. It is generally recognized that the "half-life" of a scientist is very close to ten years -- half of what the scientist or inquirer has learned will be obsolete in a decade, and half of what he will need to know in ten years hence is not available to him. Now, more than ever before, greater pressure is brought to bear on agricultural specialists like those of you gathered in this room to keep up to da~e -- to make your work more effective by continuing your education. It is in the belief that Change, through more education of dedicated people like you assembled here, may well be the mainspring of our sur­ vival. Best wishes for a productive and enjoyable conference. 1 NEW HORIZONS IN FOOD PRODUCTION •••• ! Kenneth A. Harkness, Instructor The Ohio State University Why concern ourselves today with new systems for food production? Because ••••• PRESSURES of an exploding population, both in the United States and throughout the world, are forcing us to re-evaluate existing food production practices. One birth every 7.5 seconds; one death every 17 seconds; one immi­ grant every 1.5 minutes; one emigrant every 23 minutes-~·that's our picture now in the u. s. The net gain is one person every 12 seconds, 3,000 per hour, 7,200 per day, over 2,600,000 per year. Allowing for an approximate annual consumption of 1500 pounds of food per person, this means we will need an additional 3,900,000,ooo pounds of food next year, just within the United States. Worldwide, population is increasing at the rate of approximately 70 1 000,000 per year. In about three years, world population growth will be equivalent to our present u. s. total---i.e. ANOTHER United States in less than three years. Most of this increase will occur in underdeveloped countries, where already there is a deficiency in food supply. More people mean more problems---socially and technically. Adjust­ ments are required in education, recreation, employment, housing, trans­ portation--•to mention a few·-·as well as food supply. But the latter--­ an adequate diet---constitutes man's greatest need.
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